The Growing Influence of Women in Philanthropy 

In today’s evolving financial landscape, the influence and financial autonomy of women clients cannot be overstated. According to McKinsey, U.S. women control approximately $11 trillion in assets, a number that is expected to grow to $30 trillion by 2030. As professional advisors, you’re likely aware of how critical it is to identify and understand the distinct trends influencing your female clients, particularly when they engage in charitable planning. 

Notable trends include: 

• Multi-faceted Caregiving Roles: Women often assume essential caregiving roles within their families, providing support for both their aging parents and their own children. This commitment is frequently undertaken while they manage full-time careers or operate their own business. 

• Leadership in Philanthropy: Women typically play a significant role in making philanthropic decisions within their households. Their engagement in charitable initiatives not only demonstrates their empathy but also illustrates their impact in fostering social progress and contributing to community well-being. 

• Independent Living: Many women experience periods of living alone, whether due to divorce or the death of a spouse, further influencing their perspectives on wealth and legacy. 

• Challenges in Self-Prioritization: Despite their resilience, women often face challenges in prioritizing their own needs and aspirations. Societal pressures and traditional expectations can hinder their ability to focus on self-care and personal growth, underscoring the importance of fostering a culture that values women’s well-being and encourages them to embrace their own priorities. 

Understanding these nuances is key to creating effective charitable strategies that resonate with your female clients. At Greater Houston Community Foundation (Foundation), we remain vigilant about emerging philanthropic trends and their implications for women. The Foundation is here to equip you with valuable resources and insights if you’re interested in harnessing the power of philanthropy within your female clientele’s estate and financial planning. 

Case Study: Empowering Women Through Philanthropy  

Background 

Maya Ramirez, a 52-year-old executive at a successful tech startup, has always been passionate about education and empowerment, especially for women and girls in underserved Houston communities. As a divorced mother of two, she understands firsthand the challenges many women face, balancing work, family, and personal aspirations. Over the years, her career has flourished, and she has accumulated significant wealth. With her children now in college, she finds herself with both the time and the financial resources to make a profound impact through philanthropy. 

Inspired by her personal experiences and the mentorship she received throughout her career, Maya decides it’s time to formalize her philanthropic efforts. She wants to create a legacy that aligns with her values, supports educational initiatives for women and girls, and provides resources for mentorship programs. However, she feels overwhelmed by the myriad of options and approaches to charitable giving. 

Recognizing the complexities of charitable planning, Maya consults with her financial advisor, Olivia, who specializes in philanthropy for women clients. Olivia introduces Maya Greater Houston Community Foundation which offers resources tailored specifically for her philanthropic goals. Together, they explore various strategies that would allow Maya to maximize her impact. 

Strategy #1: Establishing a Donor Advised Fund (DAF) 

Olivia explains to Maya that establishing a donor advised fund (DAF) at the Foundation is a simple and tax-efficient giving vehicle. This fund would allow her to contribute assets (including appreciated stock) that provide immediate tax benefits while enabling her to recommend grants to organizations that align with her mission over time. 

Benefits:

• Tax Efficiency: By donating highly appreciated stock to the DAF, Maya avoids capital gains taxes while receiving a full charitable deduction based on the stock’s fair market value. 

• Family Engagement: Maya involves her children in the decision-making process, allowing them to recommend grants to causes they are passionate about. This fosters a spirit of philanthropy within her family and instills values of giving and community service in her children. 

Strategy #2: Create a Field-of-Interest Fund 

Another option for Maya is exploring a field-of-interest fund, potentially in tandem with a DAF, dedicated to empowering women and girls through education. The fund would allow her to make Qualified Charitable Distributions (QCDs) from her retirement accounts, furthering her philanthropic impact while enjoying the associated tax benefits. 

Benefits:

• Sustained Impact: The fund becomes a reliable source of financial support for nonprofits focused on education and mentorship, such as local girls’ coding camps, scholarship programs, and leadership training initiatives. 

• Legacy Building: Maya names the fund in honor of her late grandmother, a teacher who inspired her love for education, creating a personal connection and ensuring her grandmother’s legacy lives on through empowering future generations. 

Continue reading: What Are Qualified Charitable Distributions?

Strategy #3: Planned Giving and Endowment Creation 

Additionally, Maya also takes an interest in planned giving. She works with her advisor and the Foundation to explore creating an endowment fund dedicated to her chosen cause. Through her estate plan, she could donate a portion of her retirement accounts and a life insurance policy to fund the endowment. 

Benefits:

• Long-Term Security: The endowment fund provides ongoing support to organizations dedicated to women’s education and empowerment, ensuring that her contributions continue to make an impact long after she is gone. 

• Continued Legacy: Over time, Maya’s endowment fund grows and allows the community foundation to implement innovative programs that align with her philanthropic vision, including annual scholarships and mentorships for female students. 

As more women like Maya engage in philanthropy, they are transforming their communities and inspiring the next generation of female leaders. Professional advisors play a critical role in this journey, providing the guidance and resources needed to navigate charitable planning effectively. By understanding the unique motivations and challenges women face, advisors can help them create impactful, personalized philanthropic legacies that align with their values and aspirations. 

Investing in Women’s Philanthropy 

At Greater Houston Community Foundation, we are deeply committed to empowering you and your clients as they navigate this essential aspect of their financial journeys. If you’re eager to explore how philanthropy can enhance your female clients’ legacies and financial plans, we encourage you to connect with our team. We offer a wealth of resources and personalized guidance tailored to your client’s unique needs. Together, we can empower women to create impactful change in their communities, ensuring that their voices and values resonate powerfully through their charitable giving.  

Contact Andrea Mayes today to explore how our expertise can effectively align your clients’ charitable giving aspirations with their estate planning strategies. 

More Helpful Articles by Greater Houston Community Foundation: 

• How to start a scholarship fund?
• The Importance of Charitable Giving in Financial and Estate Planning
• The Future Is Now: What Is Next-Gen Philanthropy?
• How to Give Back to Your Community

This website is a public resource of general information that is intended, but not promised or guaranteed, to be correct, complete, and up to date. The materials on this website, including all comments and responses to comments, do not constitute legal, tax, or other professional advice, and is not intended to create, and receipt or viewing does not constitute, nor should it be considered an invitation for, an attorney-client relationship. The reader should not rely on information provided herein and should always seek the advice of competent legal counsel and/or a tax professional in the reader’s state or jurisdiction. The owner of this website does not intend links on the website to be referrals or endorsements of the linked entities.